Asked by
Caroline Marshall
on Nov 30, 2024Verified
What does the letter E represent in Figure 1?
A) Order up to level
B) Safety inventory
C) Warehouse inventory
D) Pipeline inventory
Order Up To Level
A replenishment strategy used in inventory management where stock is ordered up to a predetermined level whenever the inventory falls below a certain point.
Safety Inventory
The reserve stock maintained to prevent stockouts, ensuring smooth operations despite demand and supply fluctuations.
Pipeline Inventory
Goods in transit or in the process of distribution, considered as a part of a company's inventory.
- Highlight and analyze the differences observable between continuous and periodic review strategies for inventory replenishment.
Verified Answer
KG
Learning Objectives
- Highlight and analyze the differences observable between continuous and periodic review strategies for inventory replenishment.